MANILA - DMCI Holdings said Tuesday it was planning to put up a $340-million cement business, as President Rodrigo Duterte rolled out an ambitious infrastructure program.
The cement production facilities, once completed, will have a production capacity of 5,000 metric tons per day, DMCI told the stock exchange.
The new venture will also help ensure cement supply for the group's construction and real estate units, DMCI said, adding it would be a "good, strategic addition" to its portfolio.
"If you believe in the story that the infrastructure program is going to take off, probably it makes sense to get into the companies that are going to benefit from this," Regina Capital managing director Luis Limlingan told ANC's Market Edge with Cathy Yang.
Limlingan said DMCI was well-positioned to enter the cement business, with its limestone reserves and a current supply backlog in the industry.
DMCI Holdings shares were up 1.72 percent to P14.16 in early trading.
Local cement producers are looking to expand as Duterte prepares to build P8 trillion in new roads, bridges, airports and railways.
Eagle Cement of tycoon Ramon Ang debuted on the Philippine Stock Exchange last week, hoping to overtake market leader Holcim in 2 to 3 years.